MORNING MEETING: Stuttering global economy hit by Russian sanctions

STOCK market investors who followed the old Sell in May adage will not be regretting their decision to take a summer break as global share prices continue to wilt against a backdrop of economic and political concerns.

George Osbourne can only look at as sanctions and a failing European economy collide with Britain's [GETTY]

The FTSE 100 has retreated 3 per cent since hitting its 14-year high in May, with the impact of sanctions against Russia an increasing cause for concern across the eurozone, whose stuttering performance will likely have repercussions for Britain's exporters.

With consumer confidence in decline, the outlook has become more uncertain

A growing list of UK firms have been left counting the cost of sterling's strength against major currencies, while across the Pond the consequences of the removal of the financial punchbowl aiding the recovery of the world's biggest economy have been brought into sharper focus as thoughts turn from the close of quantitative easing to a first rise in interest rates.

Britain's economy has shown recent signs of flagging after seemingly firing on all cylinders across services, manufacturing and construction in the first half of the year, and with consumer confidence also in decline, the outlook has become more uncertain.

Markets should be able to factor in rising borrowing costs - it is just a question of timing - but rising tensions in Ukraine and the damaging effects of worsening relations with Moscow will increase the jitters.